Management Levers for Product Platforms

Abstract

Platforming has become an important means of cost-sharing among industrial products. However, many firms face systemic downward pressure on commonality, with the result that many platforms realize less commonality than intended. Past research has hypothesized that divergence is the result of conflicting tensions between product customization/optimization and cost control. This article investigates the control and incentive levers available to platform managers to shape the behavior of the organization when divergence opportunities arise. Management levers are drawn from a series of 12 industrial case studies, stemming from investigations of the causes of divergences. These management levers are categorized as technical levers, financial levers, and organizational levers. This article illustrates each of the management levers with examples from the case studies.

Keywords:

• Platform
• Commonality
• Platforming
• Standardization
• Modularity
• Reuse

EMJ Focus Areas:

• Decision Making & Risk Management
• Economics of Engineering;
• Innovation & New Product Development
• Organization & Work System Design
• Systems Engineering

Additional information

Notes on contributors

Bruce G. Cameron

Dr. Bruce G. Cameron is the founder of Technology Strategy Partners (TSP), a consulting firm, and the Director of the System Architecture Lab at MIT. Dr. Cameron received his undergraduate degree from the University of Toronto and graduate degree from MIT. As a Partner at TSP, Dr. Cameron consults on system architecture, product development, technology strategy, and investment evaluation. He has worked with 60 Fortune 500 firms in high tech, aerospace, transportation, and consumer goods.

Edward F. Crawley

Dr. Edward F. Crawley is the Ford Professor of Aeronautics and Astronautics at MIT. He received a SB and a SM in Aeronautics and Astronautics and a ScD in aerospace structures, all from MIT. Dr. Crawley is the Past President of the Skolkovo Institute of Science and Technology (Skoltech) in Moscow, Russia. Dr. Crawley has founded a number of companies, including ACX, a product development and manufacturing firm, and Dataxu, a company in Internet advertising placement.

Jakub Kwapisz

Dr. Jakub Kwapisz is a Global Product Manager at Autoneum, a producer of vehicle acoustic systems. Dr Kwapisz received his Masters of Engineering from Politechnika Warszawska and his PhD from Instituto Superior Tecnico in Portugal. Dr. Kwapisz previously worked at Alstom Transport, where he was responsible for identifying commonality opportunities across products.

Alicia McNeill

Alicia McNeill is a consultant with Technology Strategy Partners, where she has worked closely with clients in medical devices, aerospace, and oil and gas. Previously, she was responsible for budgeting and corporate finance at Vertex Pharmaceuticals. Earlier in her career she worked at Raytheon in program management, system engineering, and business development. She holds an MS in System Design and Management from MIT and a BS in Operations Research & Industrial Engineering from Cornell University.